Audit says city is in error over unclaimed money

San Diego  The San Diego Comptroller’s Office has not been following the City Charter on how it handles unclaimed money belonging to residents and municipal employees, according to an audit released yesterday.

The City Charter calls for unclaimed money to be deposited into the city’s general fund if nobody has stepped forward to claim the funds one year after it was due, but the Comptroller’s Office waits three years, in accordance with state law.

The city has $777,832 in unclaimed money, according to the audit. The pot, which includes paychecks and pension payments not claimed by city employees, is a much larger amount than what is posted on the comptroller’s Web site, sandiego.gov/comptroller/index.shtml.

The audit said a preliminary opinion from a deputy city attorney suggests that the City Charter would take precedence over state law because the unclaimed money is “a matter of municipal concern and not a statewide concern.”

Comptroller Ken Whitfield has asked for a formal opinion from the City Attorney’s Office. In a written response to the audit, Whitfield said he will make whatever changes are needed based on outcome of the legal analysis.